Growth is forecast to hover around 3pc over the next two years, but the Bank warned the recovery's sustainability is "heavily dependent" on developments around the world.

International tensions are currently worryingly high in the wake of US plans for an extra $600bn (£370bn) of quantitative easing (QE).

China, which has been accused of deliberately undervaluing its own currency to boost exports, saw the move as the latest salvo in the ongoing currency war, in which nations compete to keep their currencies weak.

Mr King argued there was a "world of difference" between deliberately intervening in an exchange rate and setting domestic policy to which the market reacts, but he did not go so far as to follow the US in pushing for numerical targets for current account balances.

"I don't think it makes any sense to push people to agree numbers or particular policy commitments [yet] ... we're not in that position," he said.

His comments came as President Obama called for a rebalancing of global demand and for an end to "significant undervaluation" of exchange rates in an open letter to fellow G20 leaders.

"When all nations do their part - emerging no less than advanced, surplus no less than deficit - we all benefit from higher growth," he said.

In an implicit defence of the Federal Reserve's decision to go for more stimulus, he said a strong recovery was the most important global economic contribution the US could make.

"Critical agendas, such as establishing a clear guideline on limiting current account surpluses and deficits to sustainable levels and recent moves by Washington to print more money, were put on the table, but only highlighted differences between member countries," he said.

Alistair Darling, the former chancellor, warned the shared alarm which pushed G20 leaders to decisive action to protect the global economy in London last year is missing.